Hanjin's decision to retire all of its treasury shares has led to a nearly 17% surge in its stock price. This shareholder return measure, which reduces the total number of outstanding shares by about 3%, is seen as a positive move for the company's stock.
According to the Korea Exchange, as of 9:31 a.m. on November 11, Hanjin's shares were trading at 21,400 won, up 3,120 won (16.97%) from the previous trading day.
On November 10, Hanjin's board of directors announced the decision to retire 478,401 common shares, with a total book value of approximately 19.99 billion won.
The shares being retired represent 3.07% of the company's total outstanding shares. Of these, 478,399 shares were acquired in accordance with Article 341 of the Commercial Act, while the remaining two shares were acquired for specific purposes during a stock consolidation process.
As a result of this retirement, the total number of outstanding shares will decrease from 15,566,499 to 15,088,098. However, since the shares being retired are already held as treasury stock, there will be no change in the company's capital. The retirement is scheduled for November 30.
Hanjin stated that this treasury stock retirement is aimed at enhancing shareholder value.
A company representative remarked, "This stock retirement decision is intended to boost market confidence and effectively enhance shareholder value. We will continue to pursue strategies that increase corporate value and foster shareholder-friendly management."
* This article has been translated by AI.
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